Bucking The Real Estate Trend-Waynesville and Maggie Valley Real Estate

Upscale Jackson Co. golf community owes $19.8 million

By John Boyle • October 14, 2009 12:15 AM

SYLVA — Another high-end golf community in Western North Carolina is embroiled in foreclosure proceedings, this time the 4,400-acre Balsam Mountain Preserve in Jackson County.

Company President Chris Chaffin said Tuesday that Balsam Mountain has been “a market leader” in sales, with 17 closings this year. The Preserve has sold more than 230 homes sites at an average price of $530,000, but that wasn’t enough to stave off foreclosure proceedings when nearly $20 million in loans came due.

“We had sufficient sales to stay current on our interest payments and to pay down the principal and payables,” Chaffin said. “Unfortunately, our loan is due. It’s apparent the lender doesn’t have the flexibility to free up capital right now.”

Chaffin acknowledged that Balsam Mountain “actually defaulted on our loan the end of last year” and has been working with the lender since then.

The lenders listed in court documents are two corporations under the umbrella of TriLyn LLC, of Greenwich, Conn. Balsam Mountain secured two loans in 2005 for $9.8 million and $10 million.

A foreclosure hearing is scheduled for Oct. 28 at the Jackson County Justice Center. At that hearing, the debtors can show cause as to “why the foreclosure should not be allowed to be held.”

A foreclosure sale could follow later if the parties cannot work out an agreement.

Mark Antoncic, TriLyn’s managing partner, declined to comment on the foreclosure.

Opened in 2001, Balsam Preserve is slated for 354 homes, with 3,000 acres of the total land to remain protected and undeveloped. The average Balsam home site is about 1.5 acres, and the homes are often in the $1.5 million range.

Several high-end mountain housing developments are struggling in the recession, including Seven Falls Golf & River Club in Henderson County. That development, planned to accommodate 900 homes on 1,400 acres, faces a possible foreclosure sale Thursday on part of the property because the developers are behind on $15.7 million in loans.

Balsam Mountain Preserve, which has 48 completed homes, has had to lay off 38 of 80 employees and shut down its 18-hole Arnold Palmer golf course and an equestrian center, as well as food and beverage service at a boarding house.

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